1. The company has an agreement with a local bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $40,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. How to calculate the borrowing for this equation?
2. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 51,300 cc of solvent Q80.to prepare budget showing the quantity of solvent Q80 to be purchased for July, August, and September, and for the quarter in total.

DAISY PRODUCTS LIMITED Raw Materials Purchases Budget July August September Third Quarter Production needs (cc) 102,600 119,700 131,100 353,400 Add: Desired ending inventory 59,850 65,550 39,900 Total solvent Q80 needs 162,450 185,250 171,000 Deduct: Beginning inventory 51,300 59,850 65,550 Solvent Q80 purchases (cc) 111,150 125,400 105,450 342,000